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Sales Credit Note

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					                                                                 Issue date 1st June 2011

                                   Create Credit Notes

From time to time a business may have to issue a credit note to a customer to cancel an
invoice or part of the value of the invoice. Usually, as an Invoice has already been
previously created, the details of the Customer and Sales Items already exist.
It is good practice to relate the Credit note to a particular Invoice.
If an entity is not registered for VAT, then there will be no references to VAT in the
displayed screens, also therefore ignore references to VAT in the guide below.
Creating a Credit Note is very similar to creating an. (See the Creating Sales Invoices
user guide)

Creating a Credit Note Transaction
Creating a Credit Note accessed via the ACTIVITIES menu
                             ACTIVITIES  ISSUE A CREDIT NOTE

Note that if the Prompt for Analysis box (set in Profile) is ticked then when transactions are
entered which require analysis to branches, IR35 or P11D reporting; the analysis tab is
presented first by default so that the required analysis is not forgotten.




  ♦ Select the Customer from the dropdown list.
  ♦ If the invoice needs to show a ship-to location address (rather than the main customer
    address) select it from the Ship To dropdown. Note, ship-to details are entered in Customer
    Maintenance via the LISTS menu.
  ♦ Terms will default to any terms entered when the customer was set up. You may amend is
    necessary.
  ♦ The credit note number in the Credit Note# field is the next in the series; amend if
    necessary.

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                                                                     Issue date 1st June 2011

  ♦ The Credit Note Date defaults to to-days date, this to can be amended. This date is the
    transaction date for Liberty Accounts recording.
  ♦ If the Tax Point of the transaction for VAT purposes is different, enter the correct date in the
    Tax point field. Leave blank if not used.
  ♦ Enter the Customers purchase order number in the PO/Number field if you have one. Leave
    blank if not required.
  ♦ The Message field can be used to place a comment on the face of the credit note. Leave
    blank if not used.
  ♦ The Memo field can be used to enter free format descriptive text. It can be left blank. We
    suggest you use this field for a reference to the original invoice.
  ♦ The line items that make up the credit note value now need to be added. A line item is a
    number of units of a Sales Item extended by the unit value to give the total amount.
  ♦ ADD ITEM accesses the Line Item input. Select the Item from the dropdown. Default values,
    if they exist, for Rate (Unit sales price) and VAT Rate (If VAT registered). These defaults
    may be overridden. Enter any Additional Item Text (This will be printed on the credit note)
    and then enter the Quantity for the sales item. Liberty Accounts will extend the values and
    summarises them. SAVE EDIT confirms the entry. Further Line items can be entered by
    clicking on ADD ITEM on each occasion. UNDO EDIT cancels the current line item data.
    UNDO ALL EDITS cancels all line item inputs.


   Analysis Tab
The analysis tab allows for further details to be added for recording if the business is using
the Branches and/or the IR35 features. If these features are not in use, nothing needs to
be added in the analysis tab.

  ♦ Select an Associated IR35 contract if appropriate (consult your Accountant if you are
    unsure.) Also see the Working with IR35 user guide.
  ♦ Select an appropriate Branch if this credit note is to be analysed to a branch
  ♦ When all line items have been entered and analysis selected as required, clicking on
    SUBMIT saves and confirms the transaction.
  ♦ When all line items have been entered and analysis selected as required clicking SUBMIT
    saves the transaction. A confirmation statement displays in a grey line just beneath the main
    menu area. A new Create Credit Note screen also draws to allow for creating the next credit
    note.




      In the confirmation line the PRINT       icon prints the credit note The credit note is created in
      a pdf format so that it may be printed for posting as well saved on the local computer.
      Clicking the MAIL        icon will send an email with the credit note attached to the email
      address associated with the Customer (In Customer Maintenance). Hint, the email address
      will display if the mouse pointer hovers over the icon. If no valid email address has been
      entered then the      icon will display.
  ♦ Send the credit note to the customer


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                                                             Issue date 1st June 2011


Bulk Printing
Note, that for situations where a large number of invoices and credit notes need to be
printed, a bulk print facility exists. Simply go to the LISTS menu

                         LISTS  CUSTOMER INVOICES/CREDITS.

Select the documents to be printed and click the BULK PRINT button. More information is
available from the BULK SALES INVOICE PRINT user guide.

Foreign Currency Credit Note
If the selected Customer has been set up to be invoiced in a foreign currency then the
screen display also has a box for an exchange rate to be entered. (See Setting up a
Customer User guide for more information).



Note that when the Customer is selected in the drop
down a warning message is displayed to alert the
user that an exchange rate is required. Click OK to
clear the alert.




Accounting standards require that the credit note transaction for accounting purposes is
translated in to sterling (GBP) at the exchange rate in operation on the date on which the
transaction occurred or at a contracted rate if one exists. Rates can be obtained from your
bank or many internet web sites. We recommend you discuss with your advisor if you are
uncertain.

The credit note and statement documents are denominated and displayed in the currency
selected for the customer. The accounting entry is converted to sterling at the exchange
rate entered. All internal accounting and reports will display the sterling amount.


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                                                                  Issue date 1st June 2011



Editing an Credit Note Transaction
Any time after a credit note has been created it can be edited, stored and reprinted. Please
be sure that the changes are necessary particularly if the credit note has already been
sent to the customer, or has already been taken by the customer. If a credit note has been
included in a VAT return then the details of the credit note may only be viewed they cannot
be changed or the credit note deleted. Likewise if a credit note is dated in a closed
financial year it also cannot be changed.
Edit a credit note via the LISTS menu.
      LISTS  CUSTOMER INVOICES/CREDITS

  ♦ Locate the relevant credit note and click on EDIT
  ♦ The full Create Credit note screen (see above) is displayed with the current data.
  ♦ Edit the data as necessary
  ♦ When editing line item entries, highlight the appropriate line by clicking on it. The information
    appears in the edit line. Amend as necessary and SAVE EDIT to complete.
  ♦ When all changes have been made, clicking on SUBMIT saves and confirms the transaction.


  Alternatively
Edit a credit note via the ACCOUNTS RECEIVABLE under the ACCOUNTS menu.
      ACCOUNTS CURRENT ASSET ACCOUNTS              Select the relevant CUSTOMER ACCOUNT

  ♦ Locate the relevant credit note and click on
  ♦ The full Create Credit note screen (see above) is displayed with the current data.
  ♦ Edit the data as necessary
  ♦ When editing line item entries, highlight the appropriate line by clicking on it. The information
    appears in the edit line. Amend as necessary and SAVE EDIT to complete.
  ♦ When all changes have been made, clicking SUBMIT saves and confirms the transaction.




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